How to Start a Kansas Limited Company
If you want to launch a new business in Kansas, one of the best ways of doing it is by forming a Kansas LLC. The Limited Liability Company (LLC) is a popular legal structure designed for small and medium-sized businesses in Kansas.
Being trusted by many entrepreneurs in Kansas, the LLC provides personal liability protection and can save money on taxes. Any business owner looking to seek topmost security against business debts and assets protection should consider forming an LLC.
Starting an LLC in the state of Kansas can be relatively easy and affordable if you're well-aware of its required formation steps.
In this comprehensive guide, we'll walk you through the details of the process, from choosing a business name of your LLC to creating an Operating Agreement.
Decide on a Name for Your LLC
Choosing a name for your future company is the first step that you'll need to take to form an LLC.
While picking a name, make sure it is according to the Kansas LLC requirements, is unique, and easily brandable.
Another smart step would be checking if you can register a domain name that would relate to your LLC name.
Kansas LLC Business Name Requirements
Here are naming requirements that you must follow in Kansas:
- Your company's official name must end with the designators: Limited Company, Limited Liability Company, LLC, L.L.C, or L.C.
- Your new Kansas LLC's name must be separate when compared with other organizations/ trademarks in the state.
- The use of restricted words (e.g. Bank, Attorney, University) in your company name may require additional documentation and a licensed individual.
LLC Business Name Search
Before you start filing the formation documents with a chosen business name for your LLC, please check if the business name is available for registration.
You can do this by visiting the Business Filing Center of the Kansas Secretary of State.
If you need help with your company name check, please see our detailed step-by-step guide about the Kansas business entity lookup.
You can make sure that you will get the chosen business name by reserving it online.
LLC stands for limited liability company, which is a US business entity that can protect the personal assets of a business owner from business debt and lawsuits. Unlike corporations, LLCs are relatively easy to form and maintain and are not subject to double taxation.
Appoint a Registered Agent
After reserving the name, the next step is to appoint a registered agent for your company.
A registered agent is most commonly known as a resident agent in other states. Choosing a registered agent is compulsory. In fact, your LLC cannot be official without this position.
Who Can Be a Registered Agent?
A registered agent must be a state resident with a physical address in Kansas. A registered agent can also be a corporation or company that is licensed to conduct business in Kansas.
Use a registered agent service
It might be cheaper in the short-term to do all the filings yourself, but using a registered agent has several advantages:
- Convenience. Using a professional registered agent service is an affordable way to manage all government filings and legal notices for your Kansas LLC.
- Lower risk. This way you can also avoid any fees or further legal trouble caused by missing or misplacing an important document or notice.
- Privacy. If you were thinking of using your home address, but would rather keep it off public records, you can hire a Registered Agent that will allow you to use their address throughout your Articles of Organization.
A registered agent (or a resident agent) is an individual or a business entity that has been designated by the LLC to receive service of process notices, government correspondence, and compliance-related documents on behalf of the LLC. The registered agent must be residing in Kansas.
File the Kansas LLC Articles of Organization
To register your Kansas LLC, you'll need to file the Articles of Organization with the Secretary of State in Kansas.
The Articles of Organization is the legally binding document that officially and legally creates your Limited Liability Company.
You can file the form online, by mail, or in person. The filing fee is $160 (non-refundable) and is paid to the Secretary of State.
Below is the information that you will have to provide in the Articles of Organization form.
In the company name, you must include the phrase Limited Liability Company or one of its abbreviations. You can't enter words that would make people think you are a separate business organization like "corporation."
You need to provide the information about your registered agent, such as name, address, etc. Make sure your registered agent is available during business hours to accept legal notices for your LLC.
The registered office is the official business address (no P.O box) where your resident agent needs to be available.
The Secretary of State will send you legal paperwork and notices to this address.
Tax Closing Month
Most businesses operate in a calendar year and include "December" in this category. However, if your business is using a fiscal year, enter the month your fiscal year ends.
This is the date that you want your Kansas LLC to be officially formed. You can choose up to 90 days after the formation of your Kansas LLC.
Kansas LLC Organizer
Your Kansas LLC Organizer is the person who completes and submits your Article of Organization. The organizer doesn't need to be a member or manager of your company, but their signature is required in the document.
Make an Operating Agreement
Creating an Operating Agreement for your company, while not legally required, but is considered the necessity of successful businesses.
An operating agreement can include:
- Individual members' ownership percentages
- Rights and responsibilities
- How voting and decision-making works
- Management guidelines for the LLC
- How profits and losses will be allocated
Do I Need to File the LLC Operating Agreement?
An operating agreement is an internal document among the company members that remains in-house. You don't need to file it in the Secretary of the state.
An operating agreement is an internal legal document that establishes how your LLC will be run. It sets out the rights and responsibilities of the members and managers, the ownership structure, and operating procedures.
Apply For an EIN Number
The EIN (Employer Identification Number) is a nine-digit federal ID number assigned to your business by the IRS.
The IRS uses your EIN number to identify and document your Kansas LLC for tax purposes. EIN is also known as Federal Employer ID Number, FEIN, and Federal Tax Number.
It also refers to your Kansas LLC “social security number”.
Why do I need an EIN for my Kansas LLC?
It would be best if you had an EIN for your company because it helps:
- To hire and pay employees.
- To register for business and license permits.
- To open a bank account in the U.S.
- To file and manage state and federal taxes.
- To pay independent contractors.
EIN stands for Employer Identification Number. EIN is a unique nine-digit number assigned by the IRS to help identify your businesses for tax and filing purposes. An EIN is sometimes referred to as a FEIN (Federal Employer Identification Number) or FTIN (Federal Tax Identification Number).
File Annual Reports
Kansas requires that all domestic LLCs must file an annual report with the Secretary of State. The report can be submitted online (filing fee is $50) or by regular mail (filing fee is $55). You can download the report form and mail it to:
Kansas Secretary of State
Memorial Hall, 1st Floor
120 S.W. 10th Avenue
Topeka, KS 66612
The report is due by the 15th day of the fourth month after an LLC's tax closing month.
For example, if your LLC's tax closing month is December, your annual report will be due by April 15.